Home sales in May decreased by 5.1% compared to the previous year, as reported by the Canadian Real Estate Association. Despite this decline, there was a positive shift from April, with a 5.5% increase in seasonally adjusted sales totaling 47,014 for the month. The national composite housing price index experienced a marginal 0.1% drop on a month-over-month basis.
Although the housing price index has been on a downward trend for 18 months, Shaun Cathcart, CREA’s senior economist, noted that May’s drop was the smallest since January 2025. Cathcart mentioned that prices are starting to stabilize as buyer and seller expectations align.
According to CREA, there was a 1% decrease in new listings for May, with over 200,000 homes listed for sale on MLS systems nationwide by the end of the month. Regionally, home prices saw declines in British Columbia, Ontario, and Alberta.
Cathcart highlighted that the housing market conditions have been gradually improving, with sellers and buyers showing more agreement, reflected in tighter sale-to-list price ratios and shorter timeframes between listing and sale dates.
Overall, while there was a year-over-year decrease in home sales, the market showed some positive momentum in May compared to the previous month.